expand/collapse risk warning

CFDs come with a high risk of losing money rapidly due to leverage. 71% of accounts lose money when trading CFDs with this provider. You should understand how CFDs work and consider if you can take the risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

71% of retail investor accounts lose money when trading CFDs with this provider.

Trading Strategies

MTF in trading - An essential guide

MTF in trading: A city square with buildings and flags, representing a Multilateral Trading Facility, a self-regulated financial trading venue.

In financial trading, acronyms and jargon are as common as fluctuating stock prices. One term that often surfaces is 'MTF', which stands for Multilateral Trading Facility. This article will explain what MTF is, why it's an essential concept for traders to understand, and answer some frequently asked questions. By the end, you'll see why enhancing your trading skills with knowledge of MTFs is a smart move.

MTF, what is it?

A Multilateral Trading Facility (MTF) is a European regulatory term for a self-regulated financial trading venue. These facilities are designed to bring together buyers and sellers of financial instruments according to non-discretionary rules. MTFs are an alternative to traditional stock exchanges, where multiple parties can trade stocks, bonds, derivatives, and other financial instruments. They operate within the regulatory framework established by the Markets in Financial Instruments Directive (MiFID), which aims to increase competition and participation in Europe's financial markets.

Unlike traditional exchanges, MTFs do not have the same listing requirements or regulatory burdens, which can lead to lower costs and greater efficiency. However, they are required to ensure fair and orderly trading and establish transparent rules to govern their operations.

Why traders should know about MTF

Understanding how MTFs operate and the benefits they offer can be a significant advantage for traders. It allows for informed decision-making when choosing where to execute trades and can lead to improved trading performance.

  1. Diversification of trading venues: MTFs provide traders with alternatives to traditional exchanges, offering the potential for better prices, faster execution, and access to different financial instruments.
  2. Increased liquidity: By aggregating buy and sell orders from various participants, MTFs can offer increased liquidity, which is beneficial for traders looking to execute large orders without significantly affecting the market price.
  3. Transparency and fairness: MTFs are bound by MiFID regulations to ensure a transparent trading environment, which helps in maintaining a level playing field for all market participants.
  4. Cost efficiency: Typically, MTFs have lower associated costs compared to traditional exchanges, which can translate into cost savings for traders.
  5. Innovation and competition: The rise of MTFs has spurred innovation in trading technologies and services, benefiting traders through improved features and competitive pricing.


Q: How do MTFs differ from traditional stock exchanges

A: MTFs are not as heavily regulated as traditional exchanges and do not provide a listing service. They focus solely on the trading aspect, offering a platform for buyers and sellers to meet and trade.

Q: Are MTFs safe for traders

A: Yes, MTFs are subject to regulatory oversight and must comply with strict rules to ensure a fair and transparent trading environment.

Q: Can anyone trade on an MTF

A: Access to MTFs is typically available to both retail and institutional traders, although some MTFs may cater specifically to professional or institutional clients.

Q: Do MTFs offer the same securities as traditional exchanges

A: MTFs often offer a wide range of securities, some of which may not be available on traditional exchanges. However, the exact offerings will vary between different MTFs.

Q: How can I start trading on an MTF

A: To start trading on an MTF, you will need to open an account with a broker that provides access to these facilities. Ensure that the broker is reputable, such as Skilling, and offers the MTFs that suit your trading needs.

Ready to elevate your trading expertise?

Whether you're a seasoned trader or just starting out, understanding the landscape of trading venues is important. Skilling up on MTFs can give you a competitive edge in the market of CFD trading. Take the time to learn about these platforms, compare them with traditional exchanges, and consider how they might fit into your trading strategy.

Dive deeper into the world of MTFs and other trading concepts to broaden your knowledge and sharpen your trading skills with CFDs. Remember, informed trading is smart trading.

Experience Skilling's award-winning platform

Try out any of Skilling’s trading platforms on the device of your choice across web, android or iOS.

Sign up

Not investment advice. Past performance does not guarantee or predict future performance.